March Is a Critical Month for Business Taxes
March is when many business tax returns are due.
If your business is a partnership or S corporation, this month is especially important.
Missing deadlines can result in IRS penalties.
March Filing Deadlines
March 2
Businesses must submit certain information forms reporting payments made during the previous year.
These include forms related to:
- interest payments
- dividends
- miscellaneous income
Paper filers must submit these forms now.
Electronic filers may have a later deadline.
March 10
Workers who earn tips must report February tip income to their employer.
March 16
This is one of the biggest deadlines for businesses.
The following returns are due:
Partnership tax returns
Form 1065 must be filed for calendar-year partnerships.
Partners must also receive Schedule K-1 statements.
S-Corporation tax returns
Form 1120-S must be filed for S corporations.
Shareholders also receive Schedule K-1 forms.
Businesses may request a six-month extension if needed.
March 31
Employers must electronically file several reporting forms including:
- Form 1097
- Form 1098
- Form 1099
- Form W-2G
These forms report income such as interest, prizes, and certain payments.
Business Tax Rule Changes
Several tax changes affect businesses this year.
Section 179 deduction increase
Businesses may deduct more equipment purchases.
The limit increased to $2.56 million with a phase-out beginning at $4.09 million.
Cash accounting limit expanded
More businesses may now use the cash accounting method.
The eligibility limit increased to $32 million in average revenue.
Some energy credits ending
Certain energy-related tax incentives will end after June 30, 2026.
Businesses considering these projects should plan carefully.
Simple Accounting Advice
Small businesses should review their books before filing returns.
Check for:
- missing income
- incorrect expenses
- payroll errors
- bank reconciliation problems
Clean records help prevent IRS questions later.
Final Thought
March deadlines are important for partnerships and S corporations.
Filing early and reviewing financial records can prevent costly mistakes.
If you need help preparing your business tax return, Lincoln Systems is ready to help.
